SDSM warns: State debt heading toward 12 billion euros as government accused of uncontrolled borrowing

The Social Democratic Union of Macedonia (SDSM) has expressed deep concern over the state of public finances, accusing Hristijan Mickoski’s government of plunging the country into massive debt. According to the party, the government has taken out another loan because the state coffers have run out of funds.

The opposition claims that a new loan worth 1.3 billion euros has been approved, a move that it says confirms its earlier warnings. “What we have been saying for months has been confirmed: the budget is empty and the government is taking out new loans,” the Social Democrats said in an official reaction.

SDSM describes this as entirely exceptional borrowing. Including the latest amount, the party claims that in just two years in office, the current government will have added around 4 billion euros in new liabilities to the state. “This is a burden that will not be borne only by today’s citizens, but also by their children and future generations,” the party warned.

Continuing at this pace, SDSM predicts that by the end of 2026, total debt will reach approximately 12 billion euros. According to its calculations, this amount would represent more than 65 percent of gross domestic product (GDP). The party points out that the current annual budget is around 7 billion euros, but adds that this increase in funds is not translating into benefits for citizens. “The people are seeing nothing from all this extra money,” SDSM accused.

The opposition claims that instead of being used for citizens’ needs, these funds are being poured into what it called “criminal tenders.” It also directly linked the borrowing policy to the decline in living standards. According to the figures presented, the minimum cost of living for a family of four has risen by around 9,000 denars over the past two years, while the minimum wage has increased by only around 3,500 denars.

According to SDSM, this contrast shows that workers earning the minimum wage are living worse than before. The party also accused Prime Minister Mickoski of opposing an increase in the minimum wage to 600 euros. It added that there are no funds for higher wages and pensions, despite the massive borrowing and inflated budget.

The pension system was also a focus of the criticism. SDSM harshly accused the authorities of seeking to access citizens’ savings in the second pension pillar, using the term “theft.” According to the party, in addition to failing to take concrete measures to help citizens amid the cost-of-living crisis, the government is also acting suspiciously with regard to legal matters.

SDSM questioned the legal basis of the new loan, stressing that the 1.3 billion euro loan had not been included in the latest budget revision. In this context, serious accusations were levelled against Finance Minister Gordana Dimitrieska-Koçoska. “Koçoska, as the executor of Mickoski’s orders, must be aware that unlawful actions in violation of the Budget Law carry criminal liability and a prison sentence,” the opposition Social Democrats concluded in their reaction.